The South Korean government plans to October 20 discuss virtual asset taxation with exchanges
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AT A GLANCE
The South Korean government plans to October 20 hear the views of five exchanges and DAXA on implementing virtual asset taxation next year.
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South Korea will October 20 discuss virtual asset taxation with five major cryptocurrency exchanges
PANews October 18 reported, citing Yonhap News Agency, that the South Korean government will October 20 convene representatives of five virtual asset exchanges—Upbit, Bithumb, Coinone, Digital X, and GOPAX—as well as executives of the Digital Asset Exchange Association DAXA to hear their views on virtual asset taxation planned to take effect next year. Under the current proposal, income from virtual asset transfers and lending, after deducting a 2500000 KRW basic tax exemption, would be subject to 22%in other income tax and local income tax. This tax policy has been postponed times since it was proposed in 2020. The industry believes that taxation standards and tax infrastructure for transactions such as staking, airdrops, and DeFi remain incomplete, and has called for another postponement. The government is currently continuing preparations according to the original schedule.
The South Korean government will October 20 convene representatives of Upbit, Bithumb, Coinone, Digital X, and GOPAX, as well as executives of the Digital Asset Exchange Association DAXA.
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The meeting will hear the views of relevant institutions on virtual asset taxation planned to begin next year.
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Under the current proposal, income from virtual asset transfers and lending, after deducting a 2500000 KRW basic tax exemption, would be subject to 22%in other income tax and local income tax.
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This tax policy has been postponed times since it was proposed in 2020.
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The industry believes that taxation standards and tax infrastructure for transactions such as staking, airdrops, and DeFi remain incomplete, and has called for another postponement.
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The government is currently continuing preparations according to the original schedule.
AI-assisted interpretation
The following is analysis, separate from reported facts. Verify important claims independently.
The report says that the South Korean government is preparing to discuss the proposed tax plan with major virtual asset exchanges and industry associations. Under the current proposal, income from virtual asset transfers and lending, after deducting a 2500000 KRW basic tax exemption, would be subject to 22%taxation; the industry believes that the rules and supporting infrastructure for circumstances such as staking, airdrops, and DeFi remain incomplete.
Why it matters to readers
The outcome of the discussions may affect how virtual asset income is taxed, as well as the tax processing work required of exchanges and users.
If conducting virtual asset transfers, lending, staking, airdrops, or DeFi transactions in South Korea, attention should be paid to the final implementation date, tax exemption amount, tax rate, and specific filing standards; the plan reported remains in the discussion and preparation stage.
Risks and unknowns
October 20 The meeting has not yet been held, and its conclusions are unknown.
Whether the government will postpone it again remains uncertain.
Specific taxation standards and tax infrastructure arrangements for staking, airdrops, and DeFi transactions remain unclear.
The report was relayed by PANews from Yonhap News Agency and does not provide the contents of any official government document.
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Related concepts
Basic Tax Exemption
This term is not in the glossary yet. Browse related concepts in the glossary.
A method of distributing digital assets free of charge to members of the public who meet conditions such as holding assets or demonstrating address activity.
